US Funds

Payden Corporate Bond Fund (PYACX)

$9.72

NAV ($)

$-0.04

NAV change ($) as of 6/17/2024

  • Overview
  • Portfolio Statistics
  • Performance & Expenses
  • Fund Commentary
Investment Strategy

The Payden Corporate Bond Fund’s strategy is to purchase investment-grade corporate bonds of companies that have leading market positions, strong cash flow generation, stable management teams and predictable earnings. The strategy’s focus is on bottom-up credit selection with an emphasis placed on adding issues with a near-term catalyst to outperform. Our credit research process looks to capitalize on opportunities in the corporate bond market across sectors and maturities; including the early identification of potential rising stars - companies that we believe will be upgraded to investment grade in the near term. A forward-looking approach is taken to credit analysis. A priority is placed on assessing a company’s future trajectory and the corresponding risk and opportunities for bondholders under various scenarios. Up to 20% of fund assets may be below investment grade.

Role In Portfolio

Appropriate as a fixed-income holding for investors seeking a dedicated corporate bond strategy.

Fund Highlights
The fund is a well-diversified portfolio of U.S. dollar investment-grade corporate securities backed by extensive in-house credit research.
It invests in credits across the full maturity spectrum and its duration and curve positioning are actively managed.
The fund has the flexibility to opportunistically invest in below investment-grade securities and emerging-market debt.
No loads (other fees apply).
The value of an investment will generally fall when interest rates rise.

Fund Snapshot - 05/31/2024
Fund Inception Date Mar 12, 2009
Share Class Inception Date Mar 12, 2009
Ticker PYACX
CUSIP 704329366
Fund Total Net Assets $369.0 million
Benchmark BLOOMBERG US CORPORATE BOND INDEX

Net Expense Ratio 0.66%
Sales Charge None
Investment Minimum
Investor Class - Regular Account $100,000
Investor Class - IRA Account $100,000
Adviser Class - Regular Account $5,000
Adviser Class - IRA Account $2,000
SI Class $10,000,000
Additional Investment - All Classes$250

A Low Cost leader
Payden Corporate Bond Fund (PYACX) Morningstar average:
Corporate Bond
Net Expense Ratio 0.66% 0.87%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.

Portfolio Characteristics - 05/31/2024
Fund Inception Date Mar 12, 2009
Total Net Assets $369.0 million
Average Duration 6.9 years
Average Maturity 13.0 years
30-Day SEC Yield (05/31/24) 5.38%
30-Day SEC Yield (unsubsidized) 5.37%
Duration Breakdown
Years Percent of Portfolio
0-110%
1-315%
3-520%
5-713%
7-1016%
10+26%
Total 100%
Credit Breakdown
Credit Quality Percent of Portfolio
AAA5%
AA9%
A30%
BBB43%
BB8%
B4%
Unrated1%
Total 100%
Security ratings are assigned using the highest rating of Moody’s, S&P, and Fitch.
Sector Breakdown
Sector Percent of Portfolio
Industrials45%
Financial Institutions37%
Utilities7%
Mortgage-Backed4%
Asset-Backed3%
Other4%
Total 100%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.

    Number of funds
Overall 179
3 Year 179
Category: Corporate Bond 5 Year 161
Criterion: Risk-Adjusted Return 10 Year 99

Total Returns
YTD 1 Year 3 Year 5 Year 10 Year Since Inception
Quarter-end (3/31/2024) 0.12% 4.87% -1.77% 1.38% 3.04% 5.00%
Month-end (5/31/2024) -0.35% 5.21% -2.55% 0.86% 2.67% 4.91%
Yearly Returns
20238.53%
2022-16.33%
2021-0.07%
20208.64%
201914.46%
2018-3.05%
20178.53%
20166.82%
20151.15%
20149.14%
Expenses
Total Annual Operating Expense 0.66%
Net or Actual Operating Expense 0.66%

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.

(A) An overall rating is based on a weighted average of the fund’s ratings for the three-, five- and ten-year periods, if applicable. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating (based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars and the next 22.5% receive four stars. Highly rated funds are defined as those that have a four or five star Morningstar rating. Data provided by Morningstar, Inc. Although gathered from reliable sources, data completeness and accuracy cannot be guaranteed. Morningstar is a registered trademark of Morningstar, Inc. and is not affiliated with Paydenfunds

Fund Commentary - 05/31/2024

MARKET
U.S. Treasury yields fell across the curve in May by roughly 0.15% to 0.20%, propelled by a less hawkish Federal Reserve Chair Jerome Powell, who left rates unchanged, quelled any fears of a surprise rate hike, and alluded to incoming cuts once the data presented itself. Corporate yields over similar-maturity U.S. Treasuries remained resilient, falling 0.02% to 0.85%, its tightest level since October 2021. Thus, all-in yields fell 0.21% to 5.52%.
May supply picked back up with a flurry of smaller deals as $135 billion came to market, topping street expectations for the fifth straight month, and pushing year-to-date total supply to $750 billion, or up 25% year-over-year. On the month, non-financial issuance made up 62% versus financials at 38%.

OUTLOOK
During the month, the Fund took advantage of the new issue calendar, adding credits across a broad range of sectors including energy, consumer non-cyclicals, communications, and financials. The Fund also added out-of-index names within high-yield and securitized debt. To fund these purchases, the Fund took profits on several high-yield credits across sectors while also selling credits that screened expensive. The Fund extended duration from a short duration bias to finish the month flat to marginally long.
The move higher in underlying U.S. Treasury rates so far this year has also provided a nice boost to all-in corporate yields. This continues to drive investor demand for investment-grade credit and the market is easily able to absorb the record new issue calendar. Although some hotter-than-anticipated inflation data has pushed back the market’s expectation for the timing and number of Federal Reserve cuts this year, investors are still eagerly looking to add duration and lock-in these higher yields today. Corporate earnings have also come in a little better than expected, and while we saw some idiosyncratic pockets of weakness, we are starting to see some improvements again in gross margins. Given a still constructive macroeconomic backdrop, we believe corporate bonds remain a compelling buying opportunity at these high all-in yields and are well positioned to perform going forward.

Quoted performance data represent past performance, which does not guarantee future results. Investment returns and principal value will fluctuate, so investors’ shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, go to the Mutual Funds > Performance page on this website, or call 800 572-9336.

To obtain a prospectus or summary prospectus, click on the Prospectuses & Reports link on the right side of this page, or call 800 572-9336. Before investing, investors should consider investment objectives, risks, charges, expenses and other important information, which are contained in these documents; read the prospectus carefully before investing. Investment in foreign securities offers different rewards and challenges from investing in domestic securities, including changes in exchange rates, political changes, and differences in reporting standards, and for emerging-market securities, higher volatility. The Paydenfunds are distributed through Payden & Rygel Distributors, member FINRA.

Please note that by your use of this website and/or sending Payden & Rygel any information via this website, you acknowledge that any personal information you provide to us will be subject to our Privacy Notice set forth in Prospectus Appendix B here.

The investment strategy and investment management information presented on this website should not be construed to be formal financial planning advice or the formation of a financial manager/client relationship. Payden.com is an informative website designed to provide information to the general public based on our recommendations of investment management and investment strategies and is not designed to be representative of your own financial needs. Nor does the information contained herein constitute financial management advice. The firm makes no warranty or representation regarding the accuracy or legality of any information contained in this website, and assumes no liability for the use of said information. Be advised that as Internet communications are not always confidential, you provide our website your personal information at your own risk. Please do not make any decisions about any investment management or investment strategy matter without consulting with a qualified professional.